Rexford Industrial Realty, Inc. · NYSE:REXR
Rexford Industrial Realty — Q1 2023 Earnings Presentation
35 slides from Rexford Industrial Realty's earnings presentation, Apr 20, 2023
Slide 1: First Quarter 2023 Supplemental Financial Reporting Package
FIRST QUARTER 2023 Supplemental Financial Reporting Package Rexford Industrial Realty, Inc. NYSE: REXR 11620 Wilshire Boulevard, Suite 1000 Los Angeles, CA 90025 310.966.1680 Industrial 15650 S AVALON BOULEVARD | GARDENA
Slide 2: Table of Contents
Table of Contents. Section Page Corporate Data: Investor Company Summary ............................................................................................................................................................................................................................ 3 Comp
Slide 3: Investor Company Summary
Investor Company Summary. Executive Management Team Howard Schwimmer Co-Chief Executive Officer, Director Michael S. Frankel Co-Chief Executive Officer, Director Laura Clark Chief Financial Officer David Lanzer General Counsel and Corporate Secretary Board of Directors Richard Ziman Chairman Tyler H
Slide 4: Company Overview
Company Overview. For the Quarter Ended March 31, 2023 First Quarter 2023 Page 4 Supplemental Financial Reporting Package
Slide 5: Highlights - Consolidated Financial Results
Highlights - Consolidated Financial Results. Quarterly Results (in millions) Net Operating Income (NOI) Adjusted EBITDA (33% Year-over-Year Growth) (38% Year-over-Year Growth) $150 $142.3 $150 $139.8 $136.4 $129.5 $123.0 $113.6 $117.5 $120 $107.2 $120 $108.3 $101.5 $90 $90 $60 $60 $30 $30 $0 $0 Q1 2
Slide 6: Financial and Portfolio Highlights and Capitalization Data
Financial and Portfolio Highlights and Capitalization Data. (1) (in thousands except share and per share data and portfolio statistics) Three Months Ended March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Financial Results: Total rental income $ 185,164 $ 178,422 $ 162
Slide 7: Guidance: 2023 Outlook
Guidance. As of March 31, 2023 2023 OUTLOOK* YTD RESULTS AS OF Q1-2023 UPDATED INITIAL 2023 METRIC MARCH 31, 2023 GUIDANCE GUIDANCE Net Income Attributable to Common Stockholders per diluted share (1)(2) $0.30 $1.01 - $1.05 $0.94 - $0.98 Company share of Core FFO per diluted share (1)(2) $0.52 $2.11
Slide 8: Guidance (Continued): 2023 Guidance Rollforward
Guidance (Continued). As of March 31, 2023 2023 Guidance Rollforward (1) Range Earnings Components ($ per share) Notes 2023 Core FFO Per Diluted Share Guidance (Previous) $2.08 $2.12 Initial 2023 Guidance Same Property Portfolio NOI Growth — — FY 2023 SP NOI Guidance range of 7.75% - 8.50% Increment
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets. (unaudited and in thousands) March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 ASSETS Land $ 6,334,926 $ 5,841,195 $ 5,559,795 $ 4,896,343 $ 4,466,240 Buildings and improvements 3,671,384 3,370,494 3,275,572 2,923,571 2,737,575 Tenant impro
Slide 10: Consolidated Statements of Operations
Consolidated Statements of Operations. Quarterly Results (unaudited and in thousands, except share and per share data) Three Months Ended Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Revenues Rental income(1) $ 185,164 $ 178,422 $ 162,581 $ 148,987 $ 140,588 Management and leasin
Slide 11: Consolidated Statements of Operations (Continued)
Consolidated Statements of Operations. Quarterly Results (continued) (unaudited and in thousands, except share and per share data) Three Months Ended March 31, 2023 2022 Revenues Rental income $ 185,164 $ 140,588 Management and leasing services 190 163 Interest income 882 1 Total Revenues 186,236 14
Slide 12: Non-GAAP FFO and Core FFO Reconciliations
Non-GAAP FFO and Core FFO Reconciliations. (1) (unaudited and in thousands, except share and per share data) Three Months Ended March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Net Income $ 63,570 $ 45,708 $ 41,648 $ 40,901 $ 48,900 Adjustments: Depreciation and amort
Slide 13: Non-GAAP FFO and Core FFO Reconciliations
Non-GAAP FFO and Core FFO Reconciliations. (1) (unaudited and in thousands, except share and per share data) Three Months Ended March 31, 2023 2022 Net Income $ 63,570 $ 48,900 Adjustments: Depreciation and amortization 59,429 42,471 Gains on sale of real estate (12,133) (8,486) Funds From Operation
Slide 14: Non-GAAP AFFO Reconciliation
Non-GAAP AFFO Reconciliation. (1) (unaudited and in thousands, except share and per share data) Three Months Ended March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Funds From Operations(2) $ 110,866 $ 102,276 $ 92,794 $ 87,510 $ 82,885 Adjustments: Amortization of def
Slide 15: Statement of Operations Reconciliations - NOI, Cash NOI, EBITDAre and Adjusted EBITDA
Statement of Operations Reconciliations - NOI, Cash NOI, EBITDAre and Adjusted EBITDA. (1) (unaudited and in thousands) NOI and Cash NOI Three Months Ended Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Rental income(2)(3) $ 185,164 $ 178,422 $ 162,581 $ 148,987 $ 140,588 Less: Pro
Slide 16: Same Property Portfolio Performance
Same Property Portfolio Performance.(1) (unaudited and dollars in thousands) Same Property Portfolio: Number of properties 257 Square Feet 32,601,949 Same Property Portfolio NOI and Cash NOI: Three Months Ended March 31, 2023 2022 $ Change % Change (2)(3)(4) Rental income $ 134,237 $ 126,508 $ 7,729
Slide 17: Capitalization Summary
Capitalization Summary. (unaudited and in thousands, except share and per share data) Capitalization as of March 31, 2023 Net Debt: 13.6% Preferred Stock/Units: 1.7% Common Stock: 81.6% Operating Partnership Units: 3.1% Description March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Ma
Slide 18: Debt Summary
Debt Summary. (unaudited and dollars in thousands) Debt Detail: As of March 31, 2023 Stated Effective Principal Debt Description Maturity Date Interest Rate Interest Rate(1) Balance(2) Unsecured Debt: $1.0 Billion Revolving Credit Facility(3) 5/26/2026(4) SOFR+0.685%(5) 5.655% $ — $400M Term Loan Fa
Slide 19: Debt Summary (Continued)
Debt Summary (Continued). (unaudited and dollars in thousands) Debt Maturity Schedule Unsecured Secured $600,000 $500,000 $472,823 $445,074 $400,000 $401,888 $400,000 $314,209 $300,000 $200,000 $100,000 $77,978 $100,000 $6,085 $7,079 $25,000 $0 $0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Th
Slide 20: Operations
Operations. Quarterly Results Leasing Volume, Square Feet (in millions) Consolidated Portfolio Ending Occupancy 2.0 Occupancy 1.8 Occupancy Excluding Repositioning/Redevelopment 1.7 100.0% 99.2% 1.5 1.4 98.8% 97.8% 97.9% 1.1 98.0% 97.4% 96.3% 1.0 0.9 96.0% 95.2% 94.5% 94.6% 93.8% 94.0% 0.5 92.0% 0.0
Slide 21: Portfolio Overview
Portfolio Overview. At March 31, 2023 (unaudited results) Consolidated Portfolio: Rentable Square Feet Ending Occupancy % In-Place ABR(3) Total Portfolio Same Non-Same Same Non-Same Excluding # of Property Property Total Property Property Total Repositioning/ Total Per Square Market Properties Portf
Slide 22: Leasing Statistics and Trends
Leasing Statistics and Trends. (unaudited results) Leasing Activity and Weighted Average New / Renewal Leasing Spreads: Three Months Ended Mar 31, 2023(1) Dec 31, 2022(2) Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Leasing Spreads: GAAP Rent Change 80.2% 77.0% 88.6 % 83.0% 71.1% Cash Rent Change 59.7% 52
Slide 23: Leasing Statistics (Continued)
Leasing Statistics (Continued). (unaudited results) Lease Expiration Schedule as of March 31, 2023: Lease Expirations % of In-Place + Uncommenced Annualized Base Rent (ABR) 18% 16% 15.9% 15.7% 14% 14.3% 12% 12.7% 10% 10.0% 8% 6% 7.4% 6.2% 4% 5.0% 5.3% 4.0% 2% 0.4% 3.1% 0% MTM 2023 2024 2025 2026 202
Slide 24: Top Tenants and Lease Segmentation
Top Tenants and Lease Segmentation. (unaudited results) March 31, 2023 Leased In-Place + Uncommenced % of In-Place + In-Place + Uncommenced Lease Tenant Submarket Rentable SF ABR (in 000’s)(1) Uncommenced ABR(1) ABR per SF(1) Expiration Tireco, Inc. Inland Empire West 1,101,840 $18,511 3.1% $16.80 1
Slide 25: Capital Expenditure Summary
Capital Expenditure Summary. (unaudited results, in thousands, except square feet and per square foot data) Three months ended March 31, 2023 Year to Date Total SF(1) PSF Tenant Improvements: New Leases – 1st Generation $ 38 190,876 $ 0.20 New Leases – 2nd Generation 4 11,757 $ 0.34 Renewals 255 300
Slide 26: Properties and Space Under Repositioning/Redevelopment
Properties and Space Under Repositioning*/Redevelopment.(1) As of March 31, 2023 (unaudited results, $ in millions) Repositioning Est. Constr. Period(1) Total Est. Est. Total Repo/ Property Est. Proj. Proj. Cumulative Actual Annual Unlevered Property Lease-Up Leased % Target Stabilization Purch. Rep
Slide 27: Properties and Space Under Repositioning/Redevelopment (Continued)
Properties and Space Under Repositioning/Redevelopment* (Continued).(1) As of March 31, 2023 (unaudited results, $ in millions) Redevelopment Est. Constr. Period(1) Est. Total Annual Est. Property Est. Proj. Proj. Cumulative Actual Stabilized Unlevered Projected Leased % Target Stabilization Purch.
Slide 28: Properties and Space Under Repositioning/Redevelopment (Continued)
Properties and Space Under Repositioning/Redevelopment (Continued).(1) As of March 31, 2023 (unaudited results, in thousands, except square feet) Prior and Current Year Stabilized Repositioning/Redevelopment Property (Submarket) Rentable Square Feet Stabilized Period Unlevered Stabilized Yield 29025
Slide 29: Current Year Acquisitions and Dispositions Summary
Current Year Acquisitions and Dispositions Summary. As of March 31, 2023 (unaudited results) 2023 Current Period Acquisitions Est. Acquisition Unlevered Acquisition Rentable Price Occ. % at Stabilized Date Property Address County Submarket Square Feet ($ in MM) Acquisition Yield 1/6/2023 16752 Armst
Slide 30: Net Asset Value Components
Net Asset Value Components. As of March 31, 2023 (unaudited and in thousands, except share data) Net Operating Income Pro Forma Net Operating Income (NOI)(1) Three Months Ended Mar 31, 2023 Total operating rental income $185,164 Property operating expenses (42,825) Pro forma effect of uncommenced le
Slide 31: Notes and Definitions
Notes and Definitions. Adjusted Funds from Operations (“AFFO”): We calculate adjusted funds from operations, or Capital Expenditures, Non-recurring: Expenditures made with respect to a property for AFFO, by adding to or subtracting from FFO, as defined below, the following items: (i) certain non- re
Slide 32: Notes and Definitions
Notes and Definitions. Debt Covenants ($ in thousands) Adjusted EBITDA should not be considered as alternatives to net income or loss as an indicator of our operating performance. Other Equity REITs may calculate EBITDAre and Adjusted EBITDA differently March 31, 2023 than we do; accordingly, our EB
Slide 33: Notes and Definitions
Notes and Definitions. our business, real estate related depreciation and amortization (excluding amortization of deferred acquired at the beginning of the reportable period, (iii) the actual NOI of properties sold during the financing costs) and after adjustments for unconsolidated joint ventures.
Slide 34: Notes and Definitions
Notes and Definitions. • Estimated Unlevered Stabilized Yield: Calculated by dividing each project’s Estimated Annual SPP Historical Information: The table below reflects selected information related to our SPP as Stabilized Cash NOI by its Projected Total Investment. initially reported in each quar
Slide 35: Notes and Definitions
Notes and Definitions. Reconciliation of Net Income to Total Portfolio NOI, Same Property Portfolio NOI and Same Occupancy by County: Property Portfolio Cash NOI: Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2023 2022 2022 2022 2022 Three Months Ended March 31, Ending Occupancy: 2023 2022 Los Angeles Cou
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